Hazardous Waste Environmental Fee

Application of Fee

All businesses/organizations, unless otherwise exempted (see Industry Topics for exemptions), in certain industry groups as identified by the Department of Toxic Substances Control (DTSC) that have the qualified number of employees who are each employed more than 500 hours in California, during the calendar year, owe the hazardous waste environmental fee. The hazardous waste environmental fee increases based on the number of employees. (HSC section 25205.6.)

  • For periods prior to 2022, the qualifying number of employees is 50 or more employees that have worked more than 500 hours during the calendar year.
  • Beginning January 1, 2022, the qualifying number of employees is 100 or more employees that have worked more than 500 hours during the calendar year.

The number of qualifying employees is determined by counting the number of employees who are employed in California more than 500 hours. This includes vacation, sick leave, and holidays for which an employee is paid during their employment. If a person terminates employment, vacation, sick leave, holidays or other severance pay is not included when calculating the number of hours.

The fee does not apply to a nonprofit corporation primarily engaged in the provision of residential social and personal care for children, the aged, and special categories of persons with some limits on their ability for self-care, as described in SIC Code 8361 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition or as described in Codes 623220, 623312, and 623990 of the North American Industry Classification System (NAICS) published by the United States Office of Management and Budget, 2017 edition. (HSC section 25205.6)

Registration

Register online with us for an environmental fee account by selecting “Register a New Business Activity.” Visit the Online Services webpage for a list of information you may need to complete your registration.

Who is required to Register?

Effective January 1, 2007, most businesses/organizations identified by DTSC operating in California that have the number of qualifying employees who are each employed more than 500 hours in California during the calendar year are required to register. These include:

  • General partnerships
  • Limited partnerships
  • Limited liability partnerships
  • Limited liability companies
  • Sole proprietorships
  • All corporate entity types
  • Professional Employer Organizations (PEO)

Fee Rates

The hazardous waste environmental fee rates are set by statute (HSC section 25205.6). The fees are adjusted annually by the Board of Environmental Safety.

Visit the Tax Rates - Special Taxes and Fees page to review current and historical hazardous waste environmental fee rates.

Hazardous waste environmental fee rates are also listed on DTSC's Fee Summary webpage.

Return and Payment

The hazardous waste environmental fee return and payment are due annually on or before the last day of the second month following the end of the calendar year for which the hazardous waste environmental fee is due. For example, the 2021 return is due February 28, 2022.

Returns

File a Return Online – You are required to file your Environmental Fee Return electronically through our online services system. Log in using your username and password and select the account for which you wish to file a return. Then select the File a Return link for the filing period you want to file and follow the prompts. If you don't already have a username and password in our system, you will need to create one. For assistance with creating a username and password, and filing online, please view our tutorials.

We will send a courtesy reminder to the email address we have on file, prior to each filing due date. Returns must be received by the due date to be considered timely, even if no amount is owed. If the due date falls on a Saturday, Sunday or state holiday, returns received by the next business day will be considered timely.

Payments

Make a Payment – You can make payments through our online services system. Log in using your username and password and select the account for which you wish to make a payment. Under the I Want To section, select the Make a Payment link and follow the prompts.

Additional Payment Options – Visit our website for additional payment methods.

Payments must be received or postmarked by the due date to be considered timely. If the due date falls on a Saturday, Sunday or state holiday, payments postmarked or received by the next business day will be considered timely.

Penalty and Interest

The penalty for filing a late return and/or late fee payment is ten percent of the fee amount due for the period. Interest also applies to late fee payments.

Log into your account to submit an online request for an extension to file a return and/or payment, or relief from penalty (including interest due to a disaster).